Home >Companies >News >SBI may need to infuse 11,760 crore for 49% stake in reconstructed Yes Bank
The RBI plans to alter the authorised capital for the reconstucted Yes Bank to  ₹5,000 crore and number of equity shares will also be altered to 2,400 crore of  ₹2 each aggregating to  ₹4,800 crore (Photo: Priyanka Parashar/Mint)
The RBI plans to alter the authorised capital for the reconstucted Yes Bank to 5,000 crore and number of equity shares will also be altered to 2,400 crore of 2 each aggregating to 4,800 crore (Photo: Priyanka Parashar/Mint)

SBI may need to infuse 11,760 crore for 49% stake in reconstructed Yes Bank

As per RBI's draft 'Scheme of Reconstruction', the investor bank can invest in the equity of the reconstructed bank to the extent that post infusion it holds 49% shareholding in the reconstructed bank at a price not less than 10 per share

The Reserve Bank of India (RBI) placed in public domain a draft scheme of reconstruction for Yes Bank on Friday, a day after it superseded the board of troubled private sector lender with immediate effect.

At the same time, the central bank said State Bank of India has expressed its willingness to make investment in Yes Bank and participate in its reconstruction scheme.

The draft plan proposes that the investor bank will invest in the reconstructed bank for up to 49 per cent stake.

The investor bank shall agree to invest in the equity of reconstructed Yes Bank to the extent that post infusion, it holds 49% shareholding in the reconstructed bank at a price not less than 10 (face value of 2) and premium of 8. According to RBI, SBI has expressed willingness to invest in Yes Bank.

The draft Yes Bank Ltd. reconstruction scheme of 2020 states that the bank will have a enhanced equity capital of 2,400 crore shares (of 2 each aggregating to 4,800 crore) and that State Bank of India Ltd will purchase a 49% stake in the bank. Besides, the acquisition price will be not less than 10 per share.

This means that SBI will pay about 11,760 crore for the stake purchase.

Existing shareholders own 255 crore shares, and they will end up with a roughly 11% stake in the company. The balance 40% stake will presumably be held by other institutions and investors, who will need to infuse roughly 9,600 crore, assuming the acquisition price is 10 per share.

News reports on Thursday said five large private banks will participate in the recapitalisation of Yes Bank.

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